Creative Solutions PRESERVING CAPITAL
Premium financed life insurance allows high net worth individuals to borrow funds through well known, reputable US lending institutions at favorable rates to pay life insurance premium.
This is one of the most cost effective and efficient ways to purchase large amounts of life insurance than by just paying premiums each year.
Typically, clients who qualify for premium financing have access to the lowest cost of capital and qualify easily with their private banking institution.
Premiums normally paid for life insurance can continue to be managed in their investment accounts or left in their business.
Clients can benefit from potential arbitrage between the growth in cash value in the insurance policy versus the interest due on the loan each year.
Each client receives a customized insurance financing design which provides for maximum efficiency. We design plans that use reasonable assumptions taking into account each client’s risk tolerance and access to capital. Each design has an exit strategy which pays off the loan to the bank at a specified future date.